Healey to shield low-income pensioners from income tax in the Budget

Summary

Chancellor John Healey is expected to shield low-income pensioners from income tax in Wednesday's Budget, BBC News and The Guardian reported on Monday 26 October, BBC News saying changes are needed to prevent the full, flat-rate state pension becoming liable for income tax after it rises in April. Retirees will get a personal allowance aligned with the new state pension, but experts say it could get complicated, according to The Guardian, and the Birmingham Mail reported that Healey is expected to confirm on Wednesday that the full state pension will rise by 3.9% to £13,036.40 a year from April. The Treasury's plans could lead to a 'messy' cliff edge and a ballooning bill for future governments, a former pensions minister warned, according to City A.M., which wrote that Healey will use the Budget to protect nearly one million retirees who are dependent on the state guarantee, and Wales Online headlined that a 'messy' personal tax allowance increase is expected this week.

Latest: Chancellor John Healey is expected to shield low-income pensioners from income tax in Wednesday's Budget, BBC News and The Guardian reported, The Guardian writing that retirees will get a personal allowance aligned with the new state pension, while a former pensions minister warned of a 'messy' cliff edge and a ballooning bill for future governments, according to City A.M.

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